NewswireToday - /newswire/ -
Kuala Lumpur, Malaysia, 2013/07/16 - Frost & Sullivan is revising its 2013 total industry volume (TIV) forecast up by 6.3 per cent to 638,000 units, from 600,000 units estimated previously.
Frost & Sullivan is revising its 2013 total industry volume forecast up by 6.3 per cent to 638,000 units, from 600,000 units estimated previously as a result of positive consumer sentiment, enthusiastic response to key new model launches and lowered expectation of any significant price reduction from policy initiatives.
Mr. Kavan Mukhtyar, Partner & Head of the Automotive & Transportation Practice, Asia Pacific also said that Frost & Sullivan is revising its TIV forecast upwards as the likely impact of Malaysia's electoral uncertainty during the run-up to the 2013 General Election was not as high as expected.
Mr. Mukhtyar said that sales volume for the month of July is expected to recover, as consumers purchase new vehicles due to the upcoming Hari Raya festive season. The recent efforts by Bank Negara to reduce household debt may not have an immediate adverse impact as automotive loan approvals had already been tightened since last year.
He added that the launch of the new Proton Saga SV (Super Value) in mid-June will also continue to support growth for the month of July. However, August could witness moderate performance as sales are expected to decline due to the long Hari Raya holidays.
Mr. Mukhtyar also said that automakers are expected to launch key new models in the third quarter of this year, which could prop up vehicle sales. They include the new Toyota Vios, Proton P3-22A (Prevé Hatchback) and Nissan Almera hatch back.
He added that September sales could be slower due to anticipation of the budget announcement in October.
Mr. Mukhtyar said that vehicle sales are likely to pick up in the fourth quarter of 2013.
He attributed the increase in vehicles sales in the fourth quarter to the announcement of the budget and the start of the year-end festive season, which traditionally see plenty of sales promotions offered by automakers.
Review of H1 of 2013
Mr. Mukhtyar said that vehicle sales in the first half of 2013 is expected to grow 4 per cent year-on-year to reach 314,000 units, as compared to 301,269 units a year ago.
He added that the year 2013 started off with a bang as vehicle sales grew 34.5 per cent year-on-year to 55,066 units in January as compared to 40,948 units a year ago. “The robust sales were contributed by positive consumer sentiment, aggressive promotional campaigns prior to Chinese New Year season along with additional incentives for new car purchases,” he said.
Mr. Mukhtyar also said that sales were also contributed by customers delaying vehicle registration in order to receive their vehicles in the New Year.
He added that overall sales volume in the first three months of 2013 increased by 13.8 per cent year-on-year to reach 157,664 units as compared to 138,544 units previously. The launch of key new models such as the 4th generation Honda CRV and Perodua S-series models supported the TIV growth in the first quarter of 2013, he said.
However, Mr. Mukhtyar said that TIV for the second quarter of 2013 suffered a slight decline of 4 per cent year-on-year due to the uncertainties surrounding the general elections as consumers adopted a cautious approach in anticipation for the announcement of the revised NAP policies.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion | Join Us: Join our community | Subscribe: Newsletter on "the next big thing" | Register: Gain access to visionary innovation.